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CPSUs need steps to meet 20% procurement target from MSMEs: LUB

 PTI |  2016-09-26 00:32:34.0  |  Vadodara

Industry body Laghu Udyog Bharti (LUB) said that Central Public Sectors Units (CPSUs) need to take measures towards achieving the target of 20 per cent procurements from MSMEs. “So far 43 CPSUs out of a total of 277 CPSUs have achieved the target of 20 per cent.” 


Hitendra Joshi, President, Gujarat unit of LUB, said at the Annual General Meeting of LUB held here on Sunday. “As per available information, 129 CPSUs had made a total purchase of Rs 1,28,345 crore during 2014-15. However, these CPSUs made purchase of only Rs 14,551 crore from MSMEs which comes to 10 per cent purchase from them,” Joshi said. 

“If CPSUs make purchases from MSME units and meet the target, it can help additional 50 lakhs workers getting direct jobs and another 50 lakhs to get indirect employment,” he added. The 20 per cent annual procurement policy was made mandatory by the Centre from April 2015 with a view to promote MSMEs and startups in the country. Joshi said in a bid to promote start-ups, the Ministry has also issued a circular allowing PSUs to relax the norms of ‘prior experience and prior turnover’ for those MSMEs which can deliver goods as per prescribed technical and quality specifications.

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